Revenue, profits strengthen at Billington Holdings

18th Apr 2023 13:19

(Sharecast News) - Billington Holdings reported a significant increase in profits and a strong cash balance in its 2022 results on Tuesday.

The AIM-traded structural steel and construction safety solutions specialist reported a 4.7% increase in revenue to £86.6m, compared to 2021's figure of £82.7m.

It reported a profit before tax of £5.8m for the 12 months ended 31 December, up from £1.3m in the prior year, which was attributed to larger contracts in robust market sectors being completed in the year, combined with improved factory efficiencies.

The firm's strong financial performance allowed it to declare its largest-ever dividend, at 15.5p per share, up from 3p for 2021.

Billington noted that the proposed dividend was covered 2.52 times by earnings.

Looking ahead, Billington acknowledged the challenging market environment, but said it was optimistic about securing significant contracts at improved margins for 2023, with a good pipeline of further opportunities.

It also reported that non-executive director John Gordon, who had served the company for 18 years, was set to retire after the upcoming annual general meeting.

The board said a replacement recruitment process had been launched.

"2022 has been a challenging yet rewarding year for the group," said chief executive officer Mark Smith.

"The onset of the Ukraine conflict presented significant challenges in terms of material availability and raw material price escalation, and I am pleased at how these issues were successfully navigated by our team.

"Continued delivery across the group of our capital investment programme has shown significant efficiency gains."

Smith said the resolution of some outstanding legacy contracts, combined with the delivery of "high-quality, large contracts" in "robust market sectors", had assisted in 2022 being a successful year for Billington.

"While being mindful of the uncertain economic outlook for the UK, we look forward to the remainder of 2023 with a strong order book and a pipeline of significant high quality prospects.

"We are confident in maintaining the momentum from 2022 and delivering another strong performance for our stakeholders, in line with current market expectations."

At 1257 BST, shares in Billington Holdings were down 3.04% at 383p.

Reporting by Josh White for Sharecast.com.